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Cloud bursting is an application deployment model in which an application runs in a private cloud or data center and bursts into a public cloud when the demand for computing capacity spikes. The advantage of such a hybrid cloud deployment is that an organization only pays for extra compute resources when they are needed. ([Definition by SearchCloudComputing])

Neal Sample the former CTO - X.commerce at eBay gave an interesting talk last year on the economic benefit of Cloud Bursting. Neal pointed out eBay traffic statistics and showed some real numbers of the business impact of bursting peak load activities using on-demand cloud resources as presented in the diagram below.

In order to use cloud bursting effectively we need to address the following set of challenges: